The market of mobile applications grows by leaps and bounds. This huge industry is expanding every day and does not seem to stop. The army of developers is constantly increasing, the amount of apps and downloads flourishes. Therefore, the income generated by the industry of mobile applications beats all records.
The reasonable question is: how to create an app and make money on it?
The market and competitors.
Entering the mobile applications market is very easy today. If you decide to create and make money on app, you can start from online guides, books and forums on iOS and Android development. There are hundreds of small companies, specializing in small one-time orders for the development of corporate and promo apps. You can only imagine the competition among these companies.
But when it comes to professional development of apps for large businesses, that’s a different story. We talk about long term projects with millions of users in different regions. To create such an app you need the experts in coding and ux, whose infrastructure is capable of conducting complex integration with all systems of the client, provide technical support and mobile product development. Consider these factors when choosing a developer.
Earning money on mobile apps.
So you created a perfect app that was downloaded by thousands of users over the first month, but wait. Where is the money? Your brilliant idea won’t bring you any income, but the monetization strategy for apps probably will.
Monetization Models for mobile apps.
Premium apps are unavailable for downloading before you buy them. The only things you can examine are the description, video, screenshots and reviews. Convincing the user to download the paid app is a tough task and all the available materials must be very seductive. Unfortunately, taking a decision becomes difficult for user. That’s why we don’t find the paid apps among the top money making apps.
Nevertheless, Minecraft Pocket Edition is the biggest money making app in Google Play. Being launched in 2011 with the cost of $6.99 it became the most frequently downloaded game on Android.
This model intends to hide the payments inside the free app. Below are the ways to make money on apps:
- In-app purchases
- Freemium upsell
- Affiliate links
- Email marketing
- SMS marketing
- Multiple options of payment
- Partnership with another successful app
- Virtual currency
You can read our article about making money on free apps.
How to determine the price for an app?
One of the most rough mistakes developers make is the incorrect price of an app. If you decided to make an app paid, you must think twice, whether it was worth every penny. Put yourself into the client’s shoes. If someone proposed you this price, would you buy it? Before putting a price tag ask yourself a few important questions:
- Which features does my app have?
- How much do the competitor’s apps cost?
- How many times the competitor’s app was downloaded?
- Which category does my app belong to?
- Will it be used daily?
Advise: as soon as you answer these questions, analyze your competitors. Find the main aspects and compare them. This data will help you to reach success.
Range of real money making apps.
Once you’ve decided to create an application, the first question that comes is which app to develop? You can start with what you like or think will be in demand. But first, you should study the market. The Liftoff company made our lives easier by publishing report that confirmed games to be the leader among all the apps, generating about $34,8 billions of income annually. What games are more popular and interacting? Action, arcade, strategy? Research names the leader – card games.
Ideas of popular apps that make money:
- Personalization apps( launchers, icons, background images for the main screen and the lock screen etc)
- Mobile versions for magazines and newspapers
- Performance Tools
- Shopping apps
- IoT applications
- Sport, fitness, health and travel apps
- Social media apps
How much can i make from an app?
Mobile app can be a good business if you do everything right. Maybe you are asking yourself a question: How much money do game apps make? For example, incomes of Supercell who developed “Clash of Clans” game, are about $1,548,536 per day! King Digital Entertainment , the publisher of “Candy Crash”, earns $72,227 per day. Most of game apps are free and monetize via in-app purchases or advertising.
The revenue of Match Group, the developer of Tinder is expected to be approximately $300 millions in 2017.
Which platform to chose?
Picking the correct platform for your App is very important. Apple and Google have the largest and the most popular App markets. Comparing iOS and Android platforms, the CPI (cost per install) in App Store is 60% higher than in Google Play. CPR (cost per registration) – is 73% higher and CP-IAP (cost per in-app purchase,) – is 30% higher in App store.
InMobi made a research, by which 55% of developers earn less than $1000. Moreover, third part of apps didn’t reach even 10 000 downloads. By 2016 more than 25% of iOS developers earned more than $5000 monthly while only 16% of Android developers reached such result.
As you see, “making money creating apps” is still a good idea in 2017. Mobile internet becomes the necessity and people spend plenty of time using smartphones. Therefore the developers are constantly hunting user’s attention. The more time someone spends in the app, the more likely he will buy something extra.
As the mobile apps market experiences the continuous growth – the competition between developers is rather high so the competitors analysis is a must before developing an app.
Just contact us and let’s do it together!